Deal or No deal - Real world ADM - Being Transparent

[RaptorWhoSaysNI]

Well, years ago when I had a house built, there was no clause for changes to the cost of building materials.

Times be a changing.

 

[uscraptor51]

this is why dealers have to charge adm in this market. Here is a invoice for a 37pkg truck. Profit margins are slim in comparison to other vehicles in this price range. BMW,Audi,Mercedes etc

Why don’t the manufacturers just switch the model to a direct to consumer model? Order the vehicle direct, everyone pays the same exact price…MSRP? Sorry, but it’s not like the dealers provide any type of value at the point of sale…all their ROI is on the service side, selling financing packages and warranty packages.

After 100 years they are still using the same B.S., to sell cars…”this is our only one”. OH NO!!! It’s the only vehicle left on the planet??? I better pay whatever you want for it than!!!!

This is now the 3rd vehicle I’ve purchased out-of-state and it is WAY more convenient….better pricing, no hassles.

 

[WestTXRaptor6]

Not involved in the auto business and my dealer charges only invoice, so that's what I pay. However, I do find it funny that people think dealers shouldn't make money on car sales. I don't see anyone going to the grocery store or a clothing store and demanding to see their cost or asking them to sell it for cost or less. Yes, that comparison is on a different scale, but same philosophy. I am only 45 so I am not sure when the whole negotiating on car prices came about. This theory that every dealer is trying to rip people off is funny. Capitalism is a good thing and as a business owner, I try to price all my services competitively, but no way in hell I will discount to the point of breaking even or losing money.

 

[KevoUsmc]

Since I don't know the process of buying a Tesla, how does the direct online purchasing process work if you are financing? I don't have $80,000 cash to just buy a Raptor online so how do they handle complex money transactions if you pay some cash/finance the rest/trade in etc. I still feel like there's some human element involved in that?

 

[melvimbe]

Why don’t the manufacturers just switch the model to a direct to consumer model? Order the vehicle direct, everyone pays the same exact price…MSRP?

New manufacturers are taking that approach, but it would be extremely difficult to just switch your process up after doing it this way for so long. If you notice, the process has been changing. No doubt that people are ordering their vehicles more and more, and Ford is stating that things will be maintaining tighter inventory going forward.

I don't think that will force everything to MSRP though, as people will still be willing to pay more for the more popular/rate vehicles and others won't buy till they can get a discount. Among many other reasons.

 

[K223]

It has been long noted that the Raptor is one of, if not Fords golden egg when it comes to profit margins. Everyone involved makes some bank on the sale of this truck supposedly. Yet they still try to sell above MSRP even years after the new Gen has been released. But you have good chances at invoice deals by this time. Some markets are just plain rough and people still pay.

 

[spizike9]

Not involved in the auto business and my dealer charges only invoice, so that's what I pay. However, I do find it funny that people think dealers shouldn't make money on car sales. I don't see anyone going to the grocery store or a clothing store and demanding to see their cost or asking them to sell it for cost or less. Yes, that comparison is on a different scale, but same philosophy. I am only 45 so I am not sure when the whole negotiating on car prices came about. This theory that every dealer is trying to rip people off is funny. Capitalism is a good thing and as a business owner, I try to price all my services competitively, but no way in hell I will discount to the point of breaking even or losing money.

“but no way in hell I will discount to the point of breaking even or losing money.”

That’s good because dealers don’t either.

 

[WestTXRaptor6]

“but no way in hell I will discount to the point of breaking even or losing money.”

That’s good because dealers don’t either.

And you know that because you are a dealer? I bet there are lots of car deals they individually lose money on. Lots of folks in a dealership on payroll. Add in costs in land/building/floorplan/advertising/etc. I bet there is less made per car than you think. But again, everyone thinks they should make minimal profit. That's not a good way to stay in business long, especially when you take into account the economic swings as evidenced by the current pandemic.

 

[spizike9]

And you know that because you are a dealer? I bet there are lots of car deals they individually lose money on. Lots of folks in a dealership on payroll. Add in costs in land/building/floorplan/advertising/etc. I bet there is less made per car than you think. But again, everyone thinks they should make minimal profit. That's not a good way to stay in business long, especially when you take into account the economic swings as evidenced by the current pandemic.

I’m not currently in the car business but in my early 20s I was a salesman at a new car dealer and we never once lost money on a car. Not even to employees.

Nobody says dealers shouldn’t make a profit. However for most car enthusiasts dealerships provide no value anymore. I love going into dealerships and they try to ******** you with some crap that totally isn’t true.

 

[irojas]

this is why dealers have to charge adm in this market. Here is a invoice for a 37pkg truck. Profit margins are slim in comparison to other vehicles in this price range. BMW,Audi,Mercedes etc

I am not sure I agree with you that $5.5K is a slim margin when literally all they are doing is placing an orden, receiving the truck, and delivering the same day it gets there. Add to that probably a $799 dealer fee, plus bonus from Ford... plus most likely getting a trade that will generate an additional 5K of profit..